Facts:

The case involves American Bank as the plaintiff and Macondray & Co. and V. S. Wolff as the defendants. The events leading to the case began on August 12, 1902, when V. S. Wolff issued a bill of exchange for $300, payable at sight to his order, with the instruction to charge the amount to his account. The bill was directed to F. H. Taylor & Co. in Louisville, Kentucky. The bill of exchange included endorsements from V. S. Wolff and Macondray & Co., with Macondray guaranteeing payment. The American Bank, located in Manila, sent the bill to its correspondent bank in the United States for payment. However, payment was denied, prompting a notary public, C. W. Dieruff, to protest the bill on September 25, 1902. The notary's diligent search for F. H. Taylor & Co. yielded no results, and he was unable to find anyone authorized to make the payment. Consequently, he issued a formal protest against the drawer and indorser for the non-payment of the bill, along with ...

Facts:

1. Parties Involved:

   • Plaintiff and Appellee: American Bank.
   • Defendants and Appellants: Macondray & Co. and V. S. Wolff.

2. Nature of the Case:

   • The case involves a bill of exchange drawn by V. S. Wolff and indorsed by Macondray & Co. The bill was sent to F. H. Taylor & Co. in Louisville, Kentucky, for payment, but payment was not made.

3. Details of the Bill of Exchange:

   • The bill of exchange, dated August 12, 1902, was drawn by V. S. Wolff for $300.00, payable at sight to his order, and addressed to F. H. Taylor & Co. in Louisville, Kentucky.
   • The bill was indorsed by V. S. Wolff and Macondray & Co., with the latter guaranteeing payment and waiving protest, demand, and notice of nonpayment.
   • The bill was further indorsed to the First National Bank of San Francisco and then to the Third National Bank of Louisville.

4. Protest and Nonpayment:

   • The Third National Bank of Louisville attempted to collect payment from F. H. Taylor & Co. but was unable to locate the company or its representatives.
   • A notary public, C. W. Dieruff, protested the bill on September 25, 1902, due to nonpayment and dishonor.
   • The protest included expenses and was sent to the relevant parties, including V. S. Wolff, Macondray & Co., and the American Bank.

5. Plaintiff's Claim:

   • The American Bank sought to recover the amount of the bill of exchange ($300.00) plus protest expenses from Macondray & Co. and V. S. Wolff, based on the indorsement and guarantee of payment by Macondray & Co.

Issue:

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Ruling:

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Ratio:

1. Nature of Indorsement:

   • An indorsement on a bill of exchange can serve different purposes. In this case, the indorsement by Macondray & Co. was limited to verifying the authenticity of the drawer's (V. S. Wolff) signature and did not extend to guaranteeing payment.

2. Liability of Indorsers:

   • The liability of an indorser is contingent on the terms of the indorsement. If the indorsement is only for identification or verification purposes, the indorser does not incur liability for the payment of the bill.

3. Material Alteration:

   • Any material alteration in the terms of a bill of exchange by the holder without the consent of the obligor can relieve the obligor from liability. However, in this case, the Court found that the original indorsement by Macondray & Co. did not create any liability, so the issue of material alteration was moot.

4. Judgment:

   • The Court ruled in favor of the defendants, Macondray & Co. and V. S. Wolff, and held that they were not liable for the payment of the bill of exchange. The costs of both instances were charged against the plaintiff, the American Bank.